Netflix Tries to Monetize Password Sharing

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Netflix is 1cracking down on 2password sharing. The streaming giant is forcing users who share a Netflix account but do not live in the same household to set up and pay for their own account or 3formally be added to the main account, 4at an extra cost.

¡°They¡¯re trying to hit 5profitability. They¡¯re trying to generate free 6cash flow.¡±

Experts say the experiment is a bit of a risk as Netflix aims to show its investors that there¡¯s growth, in both revenue and users.

¡°There¡¯s a 7delicate balancing act they have to figure out where they keep their existing users happy and engaged. Password sharing is definitely part of that. But it¡¯s very clear that you¡¯re getting at least $1 more per user per quarter. And with 220 million users around the world, you know that that could end up being 8substantial revenue on a monthly basis.¡±

So far, the test feature is only being rolled out in Chile, Costa Rica and Peru. But news of the password crackdown landed like a bomb on Twitter with scores of users voicing 9frustrations and posing questions, like how Netflix plans to deal with unique family scenarios... such as college kids on their parent¡¯s accounts. Netflix says it will see how the features work in the three markets before potentially 10rolling them out to the rest of the world. And experts say depending on user reaction -- other popular streaming platforms could soon follow suit.

¡°All of them have in mind they can probably go as high, you know, $20 or higher, right, that over time they can just continue to 11escalate it because if they do a better job serving users, then they can start 12charging more.¡±

Article from: https://cnn.ybmnet.co.kr/cnn_class/2377